There have been a number of attempts to explain post-merger problems by
cultural differences, and in this paper, we argue that much previous research on
mergers is based on an essentialist concept of culture. We claim that this
conception is a problematic starting point for cultural studies, and argue for a
social constructionist alternative. The conceptual challenges we address are:
decontextualization of cultural issues, cultural differentiation and
fragmentation, and structural versus processual views on culture. We also
outline an agenda for future merger research and argue for studies focusing on
cultural sensemaking processes in merging organizations by adopting narrative
perspectives.
Key words: merger, culture, organizational change, integration, social
constructionism, narrative.

This article examines why Members of the European Parliament (MEPs) in 2001 turned
down a proposal for an EU take-over directive? The first explanation focuses on party
ideology. However, MEPs overwhelmingly voted according to national rather than party
lines. Two additional explanations emphasise national characteristics: labour market
legislation (national schemes to protect employees against dismissals) and corporate
governance issues. Labour market legislation can explain the UK and German MEP votes
but not the Swedish and French MEPs votes. These votes can be explained by
emphasising measures against take-overs such as a high level of market capitalisation and
unequal voting rights.